What IATA said about emissions trading: 2012 compared to 2007 and 2001. In favour to against.
IATA now makes statements such as: “The European Union’s Emissions Trading Scheme (ETS) aimed at reducing the carbon footprint of airlines, if successfully implemented, could erode more than 30 percent from the struggling industry’s profits”. Back in 2007 they said: “Intra-EU flights are expected to face minor losses in the order of €51-109 million in 2012, because of their more price-sensitive passengers. The net financial impact on extra-EU flights may be slightly positive. However, the overall impact on the profitability of all flights arriving and departing the EU will be less than 0.5% of revenues which is little better than break-even.” Transport & Environment had put together statements on a range of aspects fo the EU ETS, from 2012 and from earlier years, to demonstrate IATA’s change of heart.
What IATA said about emissions trading: then and now
Submitted on February 22, 2012
(Transport & Environment)
This briefing highlights quotes from two IATA reports, from 2001 and 2007, that show the aviation industry initially supported the concept of emissions trading for aviation, going as far as calling it a “no brainer” that would “maximise gain”. However, more recent quotes from the organisation’s CEO show that now the EU has led efforts to actually introduce such a scheme, IATA has changed its mind and launched an all-out attack against it.
Erodes profit, or makes profit?
Now
The EU-ETS could erode more than 30 percent from the struggling industry’s profits
Tony Tyler, CEO of The International Air Transport Association (IATA), 14 February 2012
Then
“The net financial impact on extra-EU flights may be slightly positive. “
IATA study, 2007 (removed from IATA website)
Emissions trading system is a “no brainer” because it “enables emissions reductions to be made at the lowest cost”, allowing the industry to “maximise gain, and minimise pain”.
IATA study, 2001 (removed from IATA website)
Distorting or not distorting?
Now
“Airlines, of course, also see (the EU-ETS) as a problem because it is introducing distortions into the market.”
Tony Tyler, CEO of IATA, 17 February 2012
Then
Emissions trading would have to apply to all airlines operating on a route or risk “potentially serious competitive distortions”.
IATA study, 2001 (removed from IATA website)
International solution vs EU action
Now
The EU’s “unilateral approach must change,”
Tony Tyler, CEO of IATA, 13 February 2012
Then
“it is politically unrealistic to expect developing countries to accept an international aviation emissions commitment in the short term”.
IATA study, 2001 (removed from IATA website)
Related topics:
http://www.transportenvironment.org/publications/what-iata-said-about-emissions-trading-then-and-now